Serica Energy provide the following operations update.

Map source: KeyFacts Energy

Highlights

• Commencement of offshore operations to prepare the Rhum R3 well for production
• Successful installation of first Columbus subsea equipment
• Significantly improved gas prices
• No COVID-19 interruptions to operations or production

Rhum Field: R3 Intervention Project

Offshore operations on the R3 Intervention project have commenced. Awilco Drilling’s WilPhoenix semi-submersible drilling rig, has arrived on location and is safely installed over the R3 well.

The Rhum field is situated some 380 km NE of Aberdeen in a water depth of 109 metres. Field development was sanctioned in 2003 and production started in December 2005. Rhum has subsea completions which are tied back to the Bruce platform complex which lies 44 km south of Rhum. The original development plan consisted of three wells but the third of these wells (R3) has never been put into production.

The current work programme will involve recovering equipment left in the well by the previous operator and removing an obstruction that is believed to be in place across parts of the downhole completion. The well will then be recompleted. Rig operations are planned to last approximately 70 days. R3 is already connected to the subsea production infrastructure and it is expected that operations to commence production from R3 will take place in early 2021.

Rhum wells produce predominantly gas with minor levels of condensate. Average Rhum production from the existing two wells in 2019 was 13,775 boe/d net to Serica's 50% field interest. A successful recompletion of R3 will increase the production capacity utilising the existing production facilities located on the Bruce platform and will, therefore, not lead to any significant additional CO2 emissions. This is in line with Serica’s stated objective of reducing the carbon intensity of the operations associated with our production. 

Columbus Development

In late September an important milestone was achieved in the Columbus development project with the successful installation of the seabed tie-in structure.

Columbus will be developed by a single subsea well, which will be connected to the Arran to Shearwater pipeline through which Columbus gas and condensate production will be exported co-mingled with Arran field production.

The Arran to Shearwater pipeline has been installed and the first Arran well has been spudded. The installation of the Shearwater to Columbus umbilical is complete and the Columbus tie-in structure has been placed on the seabed adjacent to the proposed wellhead location.

The jack-up rig Maersk Resilient has been contracted to drill the Columbus development well which is planned for the first half of 2021. First production is expected from Columbus in the second half of 2021 with expected production rates net to Serica of 3,500 – 4,000 boe/d to be achieved shortly thereafter.

Mitch Flegg, Chief Executive of Serica Energy, commented:
“We are entering an exciting period of value-adding operations. The R3 Intervention project has the potential to add significant production volumes and can provide valuable optionality to the management of Rhum wells and reservoir. The Columbus development will add further production and diversity to our portfolio.

Serica’s net production levels remain strong despite the added complexities associated with operating remote installations in a socially distanced manner. Gas prices have recovered significantly and the gas futures price outlook is good. Our balance sheet remains robust with significant cash reserves, no debt and limited decommissioning liabilities. This will enable us to execute these projects whilst simultaneously continuing to look to take advantage of current market conditions by pursuing opportunities to further expand our portfolio.” 

KeyFacts Energy: Serica Energy UK country profile